Microgen Company Static Budget for 12,000 Units of Production Includes

question 4

Multiple Choice

Microgen Company static budget for 12,000 units of production includes $48,000 for direct materials, $36,000 for direct labor, utilities of $6,000, and supervisor salaries of $18,000.A flexible budget for 14,000 units of production would show:

• A) the same cost structure in total.
• B) direct materials of $56,000, direct labor of $42,000, utilities of $7,000, and supervisor salaries of $18,000.
• C) total variable costs of $126,800.
• D) direct materials of $50,000, direct labor of $37,500, utilities of $6,250, and supervisor salaries of $21,000.

---

Definitions:

Hypothetical Syllogism (HS)

A form of logical argument where two conditional statements lead to a conclusion, following the pattern: If A, then B; If B, then C; Therefore, if A, then C.

Modus Ponens (MP)

A logical argument form where if a conditional statement ("if p then q") is accepted, and the antecedent (p) is shown to be true, then the consequent (q) must also be true.

Constructive Dilemma (CD)

A type of logical argument that presents two conditional statements and concludes that if one is true, then a specific outcome follows.

Modus Ponens (MP)

A form of argument in deductive reasoning that applies the following structure: if P then Q; P is asserted to be true, therefore Q must be true.